The Baltic Exchange’s main sea freight index extended its retreat on Monday, touching a near two-month low as vessel segments dipped.
Lower Baltic rates would normally signal lower shipping costs, but in the wake of the coronavirus pandemic the price to transport of goods and raw materials by sea has rocketed as a result of supply disruptions and bottlenecks.
* The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 60 points, or 2.6%, to reach 2,260 points, its lowest level since April 21.
* The capesize index .BACI dipped 125 points to 2,246, a fall of about 5.3%.
* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased by $1038 to $18,627.
* The panamax index .BPNI dropped 29 points, or 1.1%, to 2,600 points.
* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, dropped by $259 to $23,403.
* Benchmark iron ore and steel futures fell as fresh COVID-19 outbreaks in China revived fears of lockdowns dampening demand in the world’s top steel producer.